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Food and beverage, cosmetic and retail industries

Digital Transformation: How will manufacturers and distributors trade in 10 years?

  • 1
  • October 4, 2016
Digital Transformation

Digital processing, numeric processing or computer processing, are terms we have heard and used a lot in recent years. Today, as the latest studies show, leaders and executives are beginning to realize the importance of technology within their society.

In fact, 75.6% of companies plan to invest in their digital transformation over the next two years.

 The Digital Transformation: A new consumer approach !
In the era of digitalization, manufacturers and distributors in the food world are encouraged to rethink the way they work. Until now, the vast majority of manufacturers have found themselves in a position of dependence in the face of distributors. However, with the rise of digital transformation, suppliers have found new opportunities with the opening of new channels such as e-commerce, or with the rise of social media that allows them to become closer to the consumers at the end of the line.  Thus, by not thinking simply “product” but by thinking “consumer”, manufacturers have real playing cards through digitization.

Towards a rebalancing of trade between manufacturers and retailers.

However, this new approach tends to reverse the trend of trade and moves towards a better balance between manufacturers and distributors. This is literally a mini-revolution happening today in the relationship between manufacturers and distributors.

Manufacturers have increasingly brought value to retailers due to their knowledge of customers. The distributors then find themselves facing industrialists who know the condition of their consumers. With this new digital aspect, the game is changing and some companies have already understood this by adopting new uses such as digitizing their product catalog or adopting new distribution methods.

 The Challenges of the Food Market: Changes clearly impact trade between retailers and manufacturers.

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(Non-exhaustive list)

Faced with these global challenges for all, the whole chain must be continuous in the Consumer- Industrial -Distributor trio. Until now, everyone has responded in their own domain and in the chain were multiplied partitioned answers to problems seen as separate and unrelated. But with digital aspects, separate automation are over.

It’s a fact: that the establishment of a collaborative tool is now a wide-spread concern among retailers and manufacturers. There is no longer a sole repository of knowledge, and it needs to be seen in a global, and continual sense.

conections Towards a Collaborative Hub for a Global Innovation Chain
EDI (Electronic Data Interchange) is historically one of the first responses to this approach. However today this solution is a limited response to a few circumscribed problems such as transactions or invoice logistics. In recent years, collaborative tools have been set up such as the management of offers and such as a supplier portal, enabling manufacturers and distributors to exchange and share data collaboratively.

Today it’s not just about the cloud data that is needed by companies but of a “marketplace” for global collaborative exchange. A space where we can offer services (i.e. regulatory monitoring, negotiation space, management of crisis services, etc.) and in which all industry players can exchange.

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